Federal Trade Commission v. BAM Financial, LLC, et al., SACV15-01672-JVS (DFMx), U.S. District Court, Central District of California

Defendants in this FTC action, filed in October, 2015, are alleged to have operated unlawful debt collection businesses that violated the Fair Debt Collection Practices Act. Defendants embraced an old model – buying written-off bank debt cheap (less than $.05 per dollar) and then pursuing collection with harassment and predatory tactics administered by a call room of collectors incentivized with compensation based on results. We assembled the limited available assets and ultimately shut down the two sites in Orange County, California after concluding they could not operate lawfully and profitably going forward, particularly given that the entire debt portfolio had been tainted by improper collection tactics. The Temporary Restraining Order was extended by several months before the case was stayed in March, 2016 pending FTC approval of a settlement.